United Breweries shares fall nearly 5% from day's high on tax demand of ₹18.60 crore

Shares of beer maker United Breweries fell as much as 4.63% from the day's highest level to hit an intraday low of ₹2,034.60 on the BSE after the company informed exchanges that it has received tax demand from state GST department of Kerala.

United Breweries said that it has received tax demand along with applicable interest of ₹18.60 crore from the Kerala State Goods & Services Tax Department, Palakkad, Kerala.

The company received the tax demand on June 10 for allegedly for non-payment of turnover tax on the sale of beer.

Meanwhile, United Breweries has said that it has made adequate provision in the financials for the above demand, hence it will not have any material impact.

United Breweries added that it is exploring appropriate legal remedies against the said orders.

United Spirits was top loser among the futures and option shares; the stock fell nearly 8% to hit an intraday low of ₹1,482. Radico Khaitan dropped 4.33% to hit an intraday low of ₹2,539, Tilaknagar Industries declined 1.36% and Allied Blenders declined 4.93% to ₹423.

On Tuesday, the Maharashtra cabinet gave its nod to revenue-boosting transformations in the excise department, including an increase in duty on liquor and creation of new offices and posts.

A release from the Chief Minister's Office (CMO) said that a high-level study group explored policies from other states and shared recommendations on state excise duties, tax collection improvements, and licensing.

The cabinet gave its thumbs-up to revamp the department and set up an integrated control cell with artificial intelligence-based monitoring of distilleries and bottling plants apart from wholesale licences. The cabinet also approved the creation of a new divisional office in Mumbai and six additional superintendent (Addl SP)-level offices in Mumbai, Mumbai suburbs, Thane, Nashik, Nagpur, Pune and Ahilyanagar districts.

As of 2:31 pm, United Breweries shares traded 0.09% lower at ₹2,063.